84R267 TJB-D
By: Canales H.B. No. 3420
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation for property
used by certain nonprofit community business organizations to
provide services to aid in the economic development of local
communities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.231(a), Tax Code, is amended to read
as follows:
(a) In this section, "nonprofit community business
organization" means an organization that meets the following
requirements:
(1) the organization has been in existence for at
least the preceding five years;
(2) the organization:
(A) is a nonprofit corporation governed by
[organized under the Texas Non-Profit Corporation Act (Article
1396-1.01 et seq., Vernon's Texas Civil Statutes) or a nonprofit
corporation formed under] the Texas Nonprofit Corporation Law, as
described by Section 1.008, Business Organizations Code;
(B) is a nonprofit organization described by
Section 501(c)(6), Internal Revenue Code of 1986; and
(C) is not a statewide organization; and
(3) [for at least the preceding three years, the
organization has maintained a dues-paying membership of at least 50
members; and
[(4)] the organization:
(A) [has a board of directors elected by the
members;
[(B)] does not compensate members of the board of
directors for service on the board;
(B) [(C)] with respect to its activities in this
state, is engaged primarily in performing functions listed in
Subsection (d);
(C) [(D)] is primarily supported by membership
dues and other income from activities substantially related to its
primary functions; and
(D) [(E)] is not, has not formed, and does not
financially support a political committee as defined by Section
251.001, Election Code.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 3. This Act takes effect January 1, 2016.